Starmer's EU reset to drive up cruise prices

Telegraph

5 days ago

Holidaymakers face paying more for cruises and ferry trips to the Continent under Sir Keir Starmer 's reset deal with the European Union.
Passenger services are set to increase ticket prices in response to the UK adopting Brussels' rules on emissions costs.
Industry insiders warned price rises were likely to mirror those in Europe, where costs on some routes have gone up by more than 10 per cent. This could add as much as £200 to the cost of a seven-day cruise, where a cabin can cost as much as £2,000 at the higher end.
Some of the changes will come into force just before the height of next summer, when millions of Britons head to the Continent.
Ministers announced last week that they would press ahead with expanding onerous net zero commitments to the maritime industry.
From next July all shipping firms, including ferry operators and cruise liners, will be subject to the UK's emissions trading scheme (ETS).
The move comes after Sir Keir agreed to link the UK and EU schemes as part of his Brexit reset deal, which was signed in May.
It means ministers will set an overall cap on emissions for the maritime industry, with individual companies handed permits setting out how much greenhouse gas they can emit per year.
If a business wants to go over its allowance, because demand for services is high, it will have to buy unused permits from another company.
Over time the Government will lower the overall carbon cap in an effort to force shipping companies to reduce their emissions.
Initially the UK ETS will only cover emissions from sea journeys made between British ports.
But ministers have said they then intend to expand it to include international journeys, matching the approach taken by the EU.
Companies are poised to pass on the cost to passengers of complying with the policy, including the need to adopt more expensive green technology.
The EU Commission has admitted that its ETS scheme, which was expanded to cover shipping a year ago, has resulted in passenger lines putting up ticket prices.
In a report assessing impacts of the first year of the scheme, EU officials wrote: 'There is evidence of specific ETS surcharges being applied on short sea shipping routes.
'An analysis of various ferry routes suggests that the impact of ETS costs on ticket prices largely varies across routes selected, with a price increasing ranging from 3 per cent to 11 per cent.'
The same report also said that the scheme had introduced freight costs by between one per cent and five per cent and overall shipping costs across the industry by an average of 3.7 per cent.
If replicated in Britain those figures would come as a concern at a time when the Government is struggling to keep a lid on inflation.
Shipping industry figures said that UK holidaymakers were likely to experience a 'similar impact' on passenger ticket prices to that seen in the EU.
One said that they had 'no doubt' that ferry operators would have to increase surcharges on Britons to recoup the extra costs.
Another added: 'Inevitably there will be a cost increase to the cruise lines, therefore that money will have to come from somewhere.'
Some businesses are concerned that the UK has rushed out its proposals to please the EU rather than waiting for a new international agreement on maritime emissions later this year.
They fear that if the standards set by the International Maritime Organisation are less stringent, British firms will be left shouldering higher costs than international competitors.
Andy Harmer, the managing director of the Cruise Lines International Association in the UK and Ireland, said: 'The cruise industry contributes £5.8bn to the UK economy, with over a third of the global cruise fleet visiting UK ports each year.
'To maintain and sustainably grow the more than 60,000 UK jobs that depend on the cruise industry, the UK's ETS system must be aligned with international counterparts and not risk the UK's competitiveness in the international cruise market.'
There are also concerns that the Government's plans could wreak havoc on 'lifeline' island ferry services which are used by 2.4 million Britons every year.
Such routes are vital to island dwellers, such as on the Isle of Wight and the Scilly Isles, who rely on them for access to the mainland for healthcare, education and essential goods.
The UK Chamber of Shipping is urging ministers to exempt such services from the scheme amid warnings it could push up their fuel costs by almost a third, making many unviable.
The Net Zero Department said that linking with the EU's emissions scheme would help British businesses avoid being hit with a new carbon border tax Brussels is introducing next year.
A spokesman said of the EU Commission analysis: 'These figures do not apply to the UK and do not reflect that any costs come down as emissions are cut.
'By linking with the EU scheme, we will also cut red tape at the border, protect consumers from higher costs and make it easier for businesses to trade, boosting economic growth at home.'